Port Townsend property assessments up despite poor economy (complete article from source)
Source: Peninsula Daily News, by Erik Hidle
July 31, 2009
PORT TOWNSEND -- City residents can expect to see a rise in assessed property value, said Jefferson County Assessor Jack Westerman III.
Westerman, who has finalized the changes in assessed property values in Port Townsend, said residents can expect a 10 percent to 15 percent rise in their assessed values.
"Even though the economy is struggling and values have dropped in the last year, the assessment period runs for the last four years," Westerman said.
"From Jan. 1, 2005, to Jan. 1, 2009, is when we take a look at the change in value in Port Townsend."
State law mandates that the assessor appraise property at 100 percent of fair market value.
The rates are determined by sales of homes and land in the county.
During 2005 and 2006, property values had gone up as much as 30 percent to 45 percent in the city.
However, in 2007 and 2008, values dropped between 20 prcent and 25 percent.
"That's where you see the 10 to 15 percent rise," Westerman said.
"Overall, over four years, the values went up."
Effect on taxes
The tax implications on the raises won't be realized until April 2010, when taxes will be collected.
The assessor's office does not set taxes, so Westerman said he lacked an estimate for any potential rise in taxes paid.
He emphasized, however, that just because assessed value goes up 15 percent doesn't mean taxes will follow suit.
"If you have a levy that collects $3 million, you take that and divide it by the tax base for the area," he said.
"You pay your fair share, along with your neighbors, based on the value of your property.
"Just because your assessed value goes up doesn't mean your taxes will go up the same amount, because everyone sees the assessed value change, and it's still only collecting that $3 million levy."
Westerman closed the property sales data used to assess values on July 7. Still, he is tracking the sales since then to see how close his new numbers are.
Of the six land sales since the new values were set, his assessed values have averaged 89.4 percent of the true sale price, he said.
Of the six land and home sales, his assessed values have averaged 91.2 percent of the true sales price.
Westerman said those numbers show that his assessment was pretty close.
Wide snapshot
The four-year system used in Jefferson County means that a wide snapshot of the economy is taken to determine prices. A one-year drop in prices -- even if it is as dramatic as a national recession -- can often be overshadowed by previous years.
Westerman said that next year, t
Typically, the process would repeat itself on that schedule, but in 2014 the system will change.
"In 2014, we will change it so that every area in the county is reassessed on an annual basis," Westerman said.
"No more four-year window. Every year we will do the assessed values."
Property owners have until Monday, Aug. 31, to file an appeal of the new assessments. An appeal must be filed in writing to: Board of Equalization, P.O. Box 1220, Port Townsend, he Quilcene and Brinnon areas will be reassessed. If the recession continues, residents could see their property values drop.
"In their four-year window, they could have one year of the prices raising but three years of the prices dropping," Westerman said.
"Still, that is hard to guess, because it all depends how many homes are bought and sold and for how much."
After Quilcene and Brinnon, the Chimacum Port Hadlock and Port Ludlow area will be assessed, followed by an area including Cape George, Kala Point, Gardiner and the West End.
WA 98368.
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